Obligations
An organization must fulfill the following obligations:
- file form TP-985.22-V, Information Return for Registered Charities and Other Donees
- spend in each fiscal year a minimum amount to carry out the objectives set forth in its governing documents
Also, to avoid revocation of its registration or recognition, an organization is required to:
- spend in each fiscal period a minimum amount (disbursement quota) for activities related to the objectives set forth in its governing documents or for gifts to recognized donees
- ensure that no part of its income is used to pay, or is otherwise made available to, any proprietor, member, shareholder, trustee or settlor of the organization
- refrain from carrying on a business, in the case of a private foundation. However, a charitable organization or a public foundation may carry on:
- a business related to the objectives established in the governing documents of the organization or foundation
- a business in which all or substantially all the employees are not remunerated by the organization or foundation
sanctions exist to penalize organizations that fail to comply with their obligations.
Information return
An information return (form TP-985.22-V) must be completed by every organization that conducts its activities in Québec as:
- a registered charity
- a registered national arts service organization (RNASO)
- a registered museum
- a registered cultural or communications organization
- a recognized political education organization
The return must be filed within six months after the end of the taxation year.
Expenditure of a minimum amount
During a fiscal period, the organization must spend a minimum amount to carry out the objectives set forth in its governing documents.
For more information, consult the guide Donees Required to File an Information Return (TP-985.22.G-V).